Correlation Between Shinkong Insurance and Pan Asia
Can any of the company-specific risk be diversified away by investing in both Shinkong Insurance and Pan Asia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shinkong Insurance and Pan Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shinkong Insurance Co and Pan Asia Chemical, you can compare the effects of market volatilities on Shinkong Insurance and Pan Asia and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shinkong Insurance with a short position of Pan Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shinkong Insurance and Pan Asia.
Diversification Opportunities for Shinkong Insurance and Pan Asia
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shinkong and Pan is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shinkong Insurance Co and Pan Asia Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pan Asia Chemical and Shinkong Insurance is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shinkong Insurance Co are associated (or correlated) with Pan Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pan Asia Chemical has no effect on the direction of Shinkong Insurance i.e., Shinkong Insurance and Pan Asia go up and down completely randomly.
Pair Corralation between Shinkong Insurance and Pan Asia
Assuming the 90 days trading horizon Shinkong Insurance Co is expected to generate 1.23 times more return on investment than Pan Asia. However, Shinkong Insurance is 1.23 times more volatile than Pan Asia Chemical. It trades about 0.1 of its potential returns per unit of risk. Pan Asia Chemical is currently generating about 0.04 per unit of risk. If you would invest 6,880 in Shinkong Insurance Co on September 14, 2024 and sell it today you would earn a total of 3,420 from holding Shinkong Insurance Co or generate 49.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shinkong Insurance Co vs. Pan Asia Chemical
Performance |
| Timeline |
| Shinkong Insurance |
| Pan Asia Chemical |
Shinkong Insurance and Pan Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shinkong Insurance and Pan Asia
The main advantage of trading using opposite Shinkong Insurance and Pan Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shinkong Insurance position performs unexpectedly, Pan Asia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Pan Asia will offset losses from the drop in Pan Asia's long position.| Shinkong Insurance vs. Central Reinsurance Corp | Shinkong Insurance vs. Huaku Development Co | Shinkong Insurance vs. Fubon Financial Holding | Shinkong Insurance vs. Chailease Holding Co |
| Pan Asia vs. Yong Shun Chemical | Pan Asia vs. AVerMedia Technologies | Pan Asia vs. Shinkong Insurance Co | Pan Asia vs. Hua Nan Financial |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |